Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy

by **Ponee** Sun Sep 14, 2014 11:33 am

Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy

He said experts and specialists in regard the country's financial The implementation of the project to delete the zeros from the Iraqi dinar would increase its strength against the dollar, in addition to facilitating the drawing political price in the country, as demanded a parliamentary committee pressing the government, "which disrupted the project" to force it to be implemented through texts Constitutional which allows the printing of a new currency, pointing out that the country's exit from Chapter VII, and to achieve the balance of Iraq's 76 billion dollars in international banks catalysts for the deletion of zeros.

He said the decision of the Committee of Economy and Investment parliamentary Mahma Khelil said in an interview with the "long" The parking government against the activation of the decision to delete three zeros from the Iraqi currency under the pretext of fear of currency counterfeiting is not justified, especially as the regional climate is ripe after the withdrawal of Iraq from Chapter VII and raced companies Global investment to invest in Iraq.

He added that there is a legitimate action as a means to put pressure on the government towards forcing it to retreat from its position, including recourse to the constitutional provisions that allow the printing of a new currency and to address the weakness of the Iraqi dinar against the dollar as a necessity of economic urgency after that had a balance of Iraq's sovereign global banks 76 billion dollars.

For his part, said economic expert Majid picture "long" The Central Bank of Iraq in agreement with the Ministry of Finance presented the studies necessary for the process of deletion of zeros since 2008 and has taken all actions relating to the restructuring of the Iraqi currency, including the design of the currency and denomination and the quality of paper used her, who confirmed that from the finest stainless paper cash or difficulty rigged.

He added that the executive branch has decided to postpone the process of restructuring of the Iraqi currency has led to the cessation of all actions related to this project, explaining that the aim of the process of restructuring is to reduce the cost of handling and facilitate transactions handled especially medium and large as well as to facilitate the draw pricing policy in the country.

He stressed the need to accompany the process a package of measures distributed responsibility on all departments and state institutions and banks in order to develop solutions to the problems and obstacles that can arise during the process of restructuring, including cash, and accounting, and security as well as take the necessary measures to destroy the currency received canceled.
He pointed out that the experience of Iraq to replace the currency in 2003 was very rich, but did not exceed only change the shape of the currency and replace it, so it did not need to accounting requirements or legal, calling for the need to educate departments, banks and citizens feasibility of restructuring the currency as well as the use of modern technologies to detect fraud, also called to the non-interference of politicians and subjecting such decisions to Mazidat and political skirmishes, because that is not in the interest of monetary policy and the Iraqi economy.

It said the financial expert Thamer Alheimus "long" that highlighted the benefits of the deletion of zeros is to create flexibility and ease of trading, and gave the example that in the case of activation of the decision will be minted coins to the values of small Kkhmsin fils or less, and under that will highlight the prices between the fourth dinars and half dinars or less, and thus would be unlikely in a large increase in the value of the Iraqi dinar against the dollar in the case of Sir prudent monetary policy according to which it will contribute to improving the access of families and low-income social strata.
http://goo.gl/8cYnjd

by NewtaRado Sun Sep 14, 2014 6:08 pm

I don't get it. So they are moving away from article 7 but are postponing the revaluation? These articles always confuse me due to the translations... :/

by **Kevind53** Sun Sep 14, 2014 7:56 pm

Part of the problem is there is more than one Article VII. If they are referring to UN Article VII they have been released from that for quite a while. There is also an IMF Article VII that some have mistakenly stated Iraq is under now, and that they need to move from it to Article VIII, but that is a total fallacy. Article VII has to do with "Replenishment of Scarce Currencies," while Article VIII deals with General Obligations of Members. It is ONE of the articles governing how members do business with one another, and at it's most basic, just says "play fair".

Hard to be sure exactly what this article is actually saying, however it does appear to be one expert's opinion as opposed to official policy.

by NewtaRado Sun Sep 14, 2014 8:54 pm

As always, I'm appreciative for the clarification, Kevin. Thanks

Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy

Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy

Re: Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy

Re: Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy

Re: Delete the zeros from the dinar increases its strength against the dollar and easy to draw a price policy